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Video: What is a Stock Split?
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Ault Alliance is a holding company. Through its subsidiaries and investments, Co. owns and operates a data center at which Co. mines Bitcoin, and provides products that support a range of industries, including crane services, oil exploration, defense/aerospace, industrial, automotive, medical or biopharma, consumer electronics, hotel operations and textiles. In addition, Co. extends credit to select entrepreneurial businesses. Co. has eight segments: Energy and Infrastructure, Technology and Finance, The Singing Machine Company, Inc., BitNile, Inc., Giga-tronics Incorporated, Imperalis Holding Corp., Ault Global Real Estate Equities, Inc., and Ault Disruptive Technologies Corporation. According to our AULT split history records, Ault Alliance has had 3 splits. | |
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Ault Alliance (AULT) has 3 splits in our AULT split history database. The first split for AULT took place on May 18, 2023. This was a 1 for 300 reverse split, meaning for each 300 shares of AULT owned pre-split, the shareholder now owned 1 share. For example, a 1000 share position pre-split, became a 3.33333333333333 share position following the split. AULT's second split took place on January 17, 2024. This was a 1 for 25 reverse split, meaning for each 25 shares of AULT owned pre-split, the shareholder now owned 1 share. For example, a 3.33333333333333 share position pre-split, became a 0.133333333333333 share position following the split. AULT's third split took place on April 12, 2024. This was a 1024 for 1000 split, meaning for each 1000 shares of AULT owned pre-split, the shareholder now owned 1024 shares. For example, a 0.133333333333333 share position pre-split, became a 0.136533333333333 share position following the split.
When a company such as Ault Alliance splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each are valued at a lower price per share. Often, however, a lower priced stock on a per-share basis can attract a wider range of buyers. If that increased demand causes the share price to appreciate, then the total market capitalization rises post-split. This does not always happen, however, often depending on the underlying fundamentals of the business. When a company such as Ault Alliance conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.
Looking at the AULT split history from start to finish, an original position size of 1000 shares would have turned into 0.136533333333333 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into Ault Alliance shares, starting with a $10,000 purchase of AULT, presented on a split-history-adjusted basis factoring in the complete AULT split history.
Growth of $10,000.00
Without Dividends Reinvested
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Start date: |
04/29/2014 |
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End date: |
04/26/2024 |
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Start price/share: |
$7,250.98 |
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End price/share: |
$0.28 |
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Dividends collected/share: |
$0.00 |
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Total return: |
-100.00% |
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Average Annual Total Return: |
-63.80% |
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Starting investment: |
$10,000.00 |
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Ending investment: |
$0.39 |
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Years: |
10.00 |
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Date |
Ratio |
05/18/2023 | 1 for 300 | 01/17/2024 | 1 for 25 | 04/12/2024 | 1024 for 1000 |
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